Eligibility of Dividends for Canadian Tax Purposes

All dividends paid by Frontera are designated as “eligible dividends” for Canadian tax purposes.

Information for Non-Resident Shareholders

Dividends paid by Frontera Energy Corporation will be subject to Canadian withholding tax at the rate of 25% unless the rate is reduced under the provisions of a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence.

Where the non-resident shareholder is a United States resident entitled to benefits under the Canada-U.S. tax treaty, the rate of Canadian withholding tax on dividends is generally reduced to 15%. You may be eligible to claim a credit or deduction against your local taxes with respect to these Canadian non-resident withholding taxes. In addition, qualifying tax-exempt entities may be entitled to a 0% rate of withholding tax.

To reduce future withholding, shareholders are encouraged to speak with their broker or intermediary to obtain the applicable tax forms.

For shareholders filing U.S income tax returns, Frontera Energy Corp. is a “qualified foreign corporation” and the dividends paid on common shares are considered to be “qualified dividends”.

The tax information on this page is not intended to provide legal or tax advice. If you have any questions regarding the taxation of Canadian dividends in your local jurisdiction, please contact your local tax advisor.